The global economic structure is full of flaws and complications, as the traditional banking system continues to exploit the public. It was about time that the inefficient banking system was replaced by a superior entity.
Therefore, the world began to get familiarized with the concept of cryptocurrency. It captured the attention of the business world when it showed remarkable growth and profit potential. Cryptocurrencies like Bitcoin, are immensely popular amongst the public, and today, they are an important part of the global economic structure.
Bitcoin came into existence in the late 2000s, but it was in 2017, that its sudden increase of value shocked the entire world. People started to invest in crypto, and the total amount of digital assets doubled during the year.
However, many experts believed that Bitcoin is just a bubble, soon to burst, but the latest developments have shown that it has the potential to become the next big thing in the global economy. Nonetheless, the question about its acceptance and feasibility as a mode of payment still stands upright.
What does Cryptocurrency mean for Businesses and Organizations?
Many companies and businesses have started to accept Bitcoin, and other cryptocurrencies, as a mode of transaction and payment. But many businesses are still unsure about joining the crypto bandwagon. The volatile nature of cryptocurrency is a major concern for companies and businesses.
If they accept crypto as a mode of payment, they will have to prepare themselves for market fluctuations in the value of crypto. This can lead to severe losses at times, but it can also work out if the market rises.
Well-established food chains and retailers have accepted crypto payments. They usually translate their cryptocurrency into flat currency immediately, to reduce the risk of loss. Thus, accepting crypto payments can be a form of gambling with the business revenue.
Another major concern for businesses is that many countries have termed cryptocurrency illegal. This action is taken in a bid to reduce anonymity of transactions, so that the government is able to regulate the flow of assets. China and Brazil are two of the most prominent countries to place sanctions over crypto trading. Few countries like Switzerland have legalized and supported cryptocurrency trading. Therefore, the grey area surrounding crypto can lead to several security risks.
Furthermore, incidents of theft and fraud have also been reported, as cryptocurrency gets vulnerable to cyberattacks, despite having a highly secured Blockchain technology.
Stability and Profit Potential
Despite all of the risks involved, using cryptocurrency as a payment gateway can result in high profits as well. Being a decentralized currency, crypto does not have a regulatory body acting over it. This means that it is sensitive to headlines, and positive news can drastically increase its value. Furthermore, cryptocurrency also provides stability to financially unstable developing countries. The exchange rate of these countries often prove to be more valuable.
The increasing scope of cryptocurrencies, mainly Bitcoin, has also led to an increase in the practice of trading and mining. Therefore, trading platforms like the Bitcoin Loophole lead many profitable trades for investors and traders all over the world through the use of Artificial Intelligence.Follow and Subscribe Nyasa TV :